Is Surani Steel Tub overvalued or undervalued?

As of 19 September 2025, the valuation grade for Surani Steel Tub has moved from very expensive to expensive, indicating a slight adjustment in its perceived value. The company is currently deemed overvalued, with a PE ratio of 44.37, an EV to EBITDA ratio of 114.38, and a ROE of 2.68%. In comparison, peers such as Tata Steel, which is rated attractive, has a PE of 44.17 and an EV to EBITDA of 11.41, while Jindal Steel, rated fair, shows a PE of 25.46 and an EV to EBITDA of 12.35.
The company's performance has been notably poor, with a year-to-date return of -50.72% compared to a positive 7.11% for the Sensex, further reinforcing the notion that Surani Steel Tub is overvalued in the current market environment. The significant disparity in valuation ratios compared to its peers suggests that investors may be paying a premium for Surani Steel Tub that is not justified by its financial performance.